It's the economy...

Posted: Wednesday, September 13, 2006 9:18 AM by Mark Murray
Filed Under: Economy

The US economic picture seems bright enough to the White House right now that they ventured to issue an "Economy Watch" press release touting falling gas prices, always a risky move given how volatile prices can be. Dow Jones also reported late yesterday that the price of crude oil sank its lowest level since March 22. Based in part on that news, the Dow Jones Industrial Average closed up over 101 points, within 2% of its all-time high.

"The recent drop in oil prices could provide a welcome and surprising boost to consumer pocketbooks this fall, cushioning the economy from a falloff in home prices and construction while venting an important source of inflation pressure," says the Wall Street Journal. "The easing of energy prices is an unexpected -- and little-noted -- positive amid economic anxiety over falling housing activity, previous energy-price increases and the possibility of recession."

The chair of Bush's Council of Economic Advisers, Ed Lazear, said in a speech yesterday that "US wage growth will start to catch up with high productivity and economic growth." His speech, the Financial Times writes, "is part of a broader administration campaign to focus on the strong US economy in the build-up to critical mid-term congressional elections on November 7... However, critics of the Bush administration say that real wage growth, which excludes the inflationary cost of healthcare that has fuelled compensation growth, continues to languish at or below annual inflation."

USA Today revisits the minimum wage craze: "For the first time, a majority of states could require higher pay than the federal rate of $5.15 an hour" after this election. If all the measures out there "pass, it would equal the number of minimum wage ballot measures adopted in the 14-year span ending in 2004."

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Comments

On an earlier post, I predicted that the price of gas would drop dramatically before the midterm elections. Many of the people who responded to that, said that I was too cynical and that prices could not be manipulated so quickly and easily. Prices have dropped to the $2.10 mark in my neightborhood. I rest my case. Now, let's see how quickly prices rise post election.

HL Smith (Sent Wednesday, September 13, 2006 11:28 AM)

The sad thing is that our politicians continue to manipulate the people and the gas prices. When will we do something to get this abuse of power stoped. Election time is when and where we must show our powers and get these crooks out of office.

Frank Laurent, Staunton,IL (Sent Wednesday, September 13, 2006 12:55 PM)

My quality of life is MUCH, MUCH Better since the Bush Administration took Office.
The economy is much better now than in 1999 when those darn Democrats ran things.
Help me remember, how much was the DEFICIT when Bush took office?

I thank the Mr. President for my recent 89 cents per month cut in taxes That is about the same amount I got with his first tax cut. I promise to invest it wisely to help the economy. The dividends I receive will help offset the $1.50/gal increase in gasoline costs, my monthly home energy cost increase of $25 per month and the $253/mo. increase in my health insurance since he took office.
Since I am a Senior on fixed income since 1991 from IBM (IBM does not have a COLA for retirees) and Social Security, the extra $20 per month for gas to travel to the grocery store and doctor visits has been a great burden. I can't even afford to visit my grandchildren once a month like I used to. My health insurance premium increased from $71 to $253/month last year and the deductible increased from $350/family of 2 to $1000 each.
My Company (IBM) Medical used to pay 100% for surgery. My wife just had eye surgery and we had to pay the $1000 deductible, 20% of the medical costs, plus another $150 because the best local doctor is not in the "NETWORK". I now choose between food and medicine. If this keeps up for another 5 years I will need food stamps to survive. I'm sure glad he is allowing the 12 million Immigrants to get FREE Medical attention free Bilingual Education and Social Security Benefits. That keeps the doctors and nurses fully employed, insured SSI Disability Income and lifetime income for them. It's great that the projected ANNUAL DEFICIT has been reduced but I suspect my grand kids will still be helping to pay it off the $8 TRILLION TOTAL DEFICIT 30 years from now. Do you recall how much the deficit was when Bush took office?
His stewardship in passing his great tax cut will really help me, my quality of LIFE and the ECONOMY.

Jim Frego
Grants Pass, OR

Jim Frego, Grants Pass, OR (Sent Wednesday, September 13, 2006 7:23 PM)

Of course gas prices have dropped.......and there are how many days left for the current majority to hold on to their seats?????????

C.M. Oklahoma (Sent Wednesday, September 13, 2006 11:02 PM)

Real World
I do not know where the rosie stats about employment
and income level come from. I have not had a stable job sense July 2002. I know very few people that earn
$16.00 per hr.

EJ Yorktown, VA (Sent Thursday, September 14, 2006 11:18 AM)

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